By : Marwa Mahmoud
The stock of the US tech industry giant Apple is witnessing strong bets by investors to continue the upward trend of the company’s shares after the company’s announcement of the stock split.
It was for the aim of increasing liquidity rates and attracting small investors to trade the stock at a time when the company’s share rose for six consecutive sessions after the announcement of the retail operation, which is expected to go into effect on August 31.
A report published by Bloomberg indicates that the model through which the company’s shares are traded at the present time is similar to what happened years ago when the company announced a split process for the share, which currently has a price of about $ 440.25, according to the closing of the Wednesday session, an increase of about 18% since the announcement The segmentation process.
Under the division process, one share of the company will be divided into four shares, meaning that every person who owns one share in the company will get 3 new shares, bringing the total of his possession to 4 shares after completing the division process with the fact that each of those shares will lose 25% of its value. The current market price, so the expected price of the share after the division is about $ 105.
Christopher Brankin, CEO of TD Ameritrade Asia, a Singapore-based tanning company, told the agency, “We are used to this when it comes to splitting a large company along the lines of Apple … Splitting the company’s stock means new classes of investors and we’re talking here about retail investors.” specially”.
He continued, “Therefore, we noticed the strong movement in the options markets on the company’s shares, whose rise is seen as a strong indicator of investors’ bet on the rise of the company’s shares.”
A research note issued by Sundial Capital Research said that the derivative contracts of the US Company Apple are being traded at the highest level this year for the upward investment risk side, indicating strong investor appetite.